In the world of influencer marketing, there is a significant difference between micro influencers and well-known influencers with millions of followers. When working with a beauty company on their influencer marketing strategy, npdigital faced a decision: focus on prominent influencers or micro influencers. Ultimately, they settled on working with both and comparing the data to determine which approach would yield the best results.
The Results: Big Influencers
When working with prominent influencers, they found that the campaign wasn’t profitable from a direct conversion standpoint. However, there were branding benefits, and the cost per mille (CPM) wasn’t too bad at $1.06. Despite the lack of direct profitability, the exposure gained from working with these well-known influencers had value for the brand.
The Results: Micro Influencers
Before diving into the micro influencer stats, it’s important to note that all of them were required to keep the post up for at least two days and maintain the link in their bio for 48 hours. Working with micro influencers was substantially cheaper, but it involved significantly more work on their end, as they had to manage 137 influencers instead of just 32.
When comparing the cost per acquisition (CPA), micro influencers cost $130.50 versus $547.62 for the prominent influencers. From a direct return on investment (ROI) perspective, both created a loss, but micro influencers lost npdigital less money per sale.
Why Micro Influencers Performed Better
There are several reasons why micro influencers provided a better CPA:
- Their followers are mainly all beauty-related. When scaling up to more prominent influencers, people follow them for various reasons, not just beauty content.
- Micro influencers don’t get hit up to promote products and services as much, so they’re more flexible and open to partnerships.
- They try harder to please brands to secure repeat business, leading to more genuine and engaging content.
In conclusion, while micro influencers typically provide a better CPA, it requires more work to manage them as you need a large number of them to make a significant impact. The choice between micro influencers and well-known influencers ultimately depends on your brand’s goals, resources, and target audience.
Frequently Asked Questions
Q: What is the difference between micro influencers and well-known influencers?
Micro influencers typically have a smaller, more niche following, while well-known influencers have millions of followers and a broader audience. Micro influencers often have higher engagement rates and more targeted audiences, while well-known influencers offer greater reach and brand exposure.
Q: How do the costs compare between micro influencers and well-known influencers?
Working with micro influencers is generally cheaper than working with well-known influencers. In the case study, the cost per acquisition (CPA) for micro influencers was $130.50, while the CPA for well-known influencers was $547.62.
Q: Why do micro influencers often provide a better CPA?
Micro influencers typically have more targeted, niche audiences who are genuinely interested in the content they produce. They also tend to be more flexible and willing to work harder to secure repeat business, resulting in more authentic and engaging content.
Q: What are the challenges of working with micro influencers?
Working with micro influencers can be more time-consuming and resource-intensive, as you need to manage a larger number of influencers to achieve the desired impact. In the case study, the brand had to manage 137 micro influencers compared to just 32 well-known influencers.
Q: How can brands decide between working with micro influencers or well-known influencers?
The decision between micro influencers and well-known influencers depends on the brand’s specific goals, target audience, and available resources. If the goal is to maximize reach and brand exposure, well-known influencers may be the better choice. However, if the goal is to target a specific niche audience and achieve a better CPA, micro influencers may be the more effective option.
